Tax
Section 80C Planner
The ₹1.5L cap is precious — split it across the right mix of EEE products (PPF, EPF, Sukanya), equity (ELSS for higher returns), and term insurance. See tax saved at 30% slab + blended portfolio return.
Allocate ₹1.5L across instruments
Tax saved & blend
Old regime only — new regime doesn't allow 80C. If you're in new regime, ELSS/PPF still make sense for returns, just no tax deduction.
Recommended 80C mix for most
- 1. EPF auto-deducted from salary — usually ₹40K–80K of cap consumed by default
- 2. ELSS SIP for the remaining ₹70K–110K — equity gives best long-term return, only 3-yr lock-in
- 3. If you have a girl child, max out Sukanya Samriddhi (8.2% tax-free) before PPF
- 4. Term insurance premium (small portion) — necessity, not optimisation
- 5. Home loan principal counts toward 80C — check before adding ELSS/PPF
FAQs
What is the maximum 80C deduction?
₹1.5 lakh per financial year (combined across all eligible instruments). Anything above this gets no tax benefit.
Does 80C work in the new tax regime?
No. The new regime (default from FY 2023-24) does not allow 80C deductions. ELSS/PPF still make sense for returns, but no tax saving. 80C only works in old regime.
Which 80C option gives the highest return?
Historically: ELSS (12% equity returns), then PPF (7.1% tax-free), Sukanya Samriddhi (8.2% if applicable), NSC (7.7% taxable), tax-saver FD (6.5% taxable). EPF auto-deducted from salary at 8.25% tax-free.
Can I claim more than ₹1.5L by adding other instruments?
Only NPS Section 80CCD(1B) gives an extra ₹50K deduction beyond 80C. Health insurance under 80D is separate. Home loan interest under 24(b) is also separate.
What is "EEE" status?
Exempt-Exempt-Exempt: contributions deductible (E1), interest tax-free (E2), maturity tax-free (E3). PPF, EPF, Sukanya Samriddhi qualify. Very rare — most products are EET (taxable on maturity).